Functional health literacy (FHL), the ability to perform basic reading and numeracy tasks in a health care context, is associated with knowledge of chronic disease management and disease outcomes in individuals who have been diagnosed with Type 2 diabetes. The overarching objective of the proposed pilot study is to clarify the relationship between FHL and diabetes management by examining two potential moderating factors: patient self-efficacy in communicating with health care providers and patient psychological distress. The primary aim of this study is to examine the main effects of FHL, patient self-efficacy in communicating with health care providers, and psychological distress as predictors of diabetes management in a population of veterans diagnosed with Type 2 diabetes. The secondary aim is to determine if self-efficacy and/or psychological distress moderate the impact of FHL in diabetes management. Over two years, 125 participants with Type 2 diabetes will be recruited from the VA Boston Healthcare System. All participants wilt complete measures to assess FHL, self-efficacy, psychological distress, and diabetes self-care activities. Staff will gather objective indicators of diabetes management (i.e., lab values) by reviewing participants' medical charts. It is hypothesized that 1) Inadequate FHL, limited patient self-efficacy, and psychological distress will predict poorer diabetes management as reflected by self-report self-care activities and objective health indicators; 2) Self efficacy will moderate the effects of FHL on diabetes management, such that higher levels of self efficacy will result in improved diabetes management, and; 3) Psychological distress will weaken the relationship between FHL and diabetes management, such that increased psychological distress will result in poorer diabetes management. Results from this pilot project will be used to support and develop interventions to improve diabetes management.